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Section : What payments are required when annual leave is taken?
Domain : Human Resource Management
Classification : Not Identified
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Under the NES, annual leave is paid at the employee's base pay rate for all ordinary hours worked. Ordinary hours under the NES can't exceed 38 hours in a week. The base rate does not include:
- overtime rates
- penalties
- allowances
- bonuses. Awards and registered agreements can set out:
- a different method of payment for annual leave, for example, a rate of pay that is higher than the base rate of pay
- that annual leave loading is paid for annual leave. On termination of employment, an employer must pay an employee for any period of untaken annual leave. The payment for the untaken leave has to be the same as what the employee would have been paid if they took the leave. This includes annual leave loading if it applied during employment.